Royal Dutch Shell Arctic rig sparks drill fears

Jan 7th, 2013

by John Donovan.

The reputational damage to Shell's chief executive Peter Voser and the rest of the board is enormous. Shell has spent most of the past year defending allegations that it is incapable of drilling safely in the environmentally-sensitive Arctic region, which is regarded as the next frontier for oil.

By Daily Mail Reporter Monday 7 January 2013

Fears are growing that Royal Dutch Shell could further delay its entire drilling programme in the region where the US Army was embarrassingly called in to help salvage its Kulluk Arctic drilling rig.

The 266ft-diameter Kulluk ran aground off uninhabited Sitkalidak Island, about 200 miles south of Anchorage, Alaska, on New Year's Eve as it was hit by a storm while being towed to Seattle for maintenance.

So far there has been no leakage of diesel or the hydraulic fluidstored aboard in strong tanks, and no loss of life or significant injuries.

But experts say the longer the rig sits offshore, the greater the chances of a large-scale fuel leak that could destroy this protected natural habitat.

A spill would also jeopardise vital systems that provide food for nearby villages.

The reputational damage to Shell's chief executive Peter Voser and the rest of the board is enormous.

It is believed some institutional shareholders have never been happy with the amount of cash being thrown at the Arctic drilling programme.

Shell has spent most of the past year defending allegations that it is incapable of drilling safely in the environmentally-sensitive Arctic region, which is regarded as the next frontier for oil.

Their ships have caught fire and lost control, while its own spill containment equipment has been damaged in various mishaps.

Shell has so far spent £3.2billion buying leases and on exploratory drilling off Alaska's north and north-west coasts, but has yet to discover any commercial quantities of oil.

Shell's other Arctic rig, the Noble Discoverer, can only drill when the Kulluk is available to serve as backup in the event of a spill.

SOURCE

Posted in: Alaska, Arctic, Daily Mail, Environment, Oil, Peter Voser, Royal Dutch Shell Plc, United States.
Tagged: Alaska · Arctic Ocean · Beaufort Sea · Chukchi Sea · Oil · Royal Dutch Shell Plc

← Shell's money play is on the rocks

Reputational damage to Peter Voser →

Shell faces an Arctic meltdown

Jan 6th, 2013

by John Donovan.

Royal Dutch Shell could be forced to delay its entire drilling programme in the Arctic this year unless its grounded Kulluk rig can be repaired in time, the City's top oil analyst has warned. The grounding of the Kulluk rig has left Peter Voser, Shell's chief executive, dealing with a 'reputational hit'.

By Emily Gosden: Published in The Sunday Telegraph 6 Jan 2013

The oil major's controversial project also faces a series of regulatory hurdles that may now be even harder to pass as opponents of Arctic drilling prepare to capitalise on the reputational damage of the accident.

Last night, the Kulluk drilling rig remained grounded off Alaska as theUS Army was drafted in to help salvage operations. Officials were unable to say whether the rig, which was hit by a storm while being towed to Seattle for maintenance, was seaworthy or when it could be moved.

Shell refused to comment on whether it would be able to continue with its plans to drill for oil this summer — the culmination of a seven-year quest that has already seen it spend nearly $5bn (£3.1bn).

It plans to drill with the Kulluk in the Beaufort Sea and another rig, the Noble Discoverer, in the Chukchi Sea, where it spent more than $2bn acquiring leases. But its own safety plans require both rigs to be available so one can drill a "relief well" to stem a spill in the event the other suffers a blowout.

Jon Rigby, head of European oil and gas research at UBS and Extel's top-rated oil analyst for four years running, said: "The absence of a second drill ship this summer, if it comes to that, might hold back all operations, putting the company out of compliance with its safety case — further delaying drilling and adding costs."

The grounding of the drilling rig, the cost of which Shell has yet to quantify, was "unlikely to hurt [Shell's] bottom line directly" but constituted a "very unfortunate reputational hit", he said in a research note. "The costs to Shell of a salvage operation and any needed repairs are unlikely to be great. But negative headlines are not helpful ."

The Arctic is seen as one of the world's most promising untapped oil and gas regions, with as much as 15bn barrels of oil thought to lie beneath the Chukchi Sea and 8bn barrels under the Beaufort.

Shell first planned to drill there in 2007 but faced legal and regulatory delays. It hoped to finally get the programme under way in 2012 but a series of setbacks limited it to drilling shallow "top-holes".

Even if the Kulluk can be repaired in time for this summer's programme, Shell must still secure a series of regulatory approvals before it can drill into potentially oil-bearing rocks.

A "containment dome", a key piece of equipment used to cap any spill, needs further work after being "crushed like a beer can" during tests, according to official emails. The Noble Discoverer is also being repaired after the Coast Guard flagged problems.

Shell may also need fresh approval from the US authorities for its 2013 drilling plans, permits for specific wells, and for the project's impact on marine mammals.

"Shell got a green light to harass polar bears, but just for 2012; they will have go back and explain how many they intend to disrupt were they to go back in 2013," said Ben Ayliffe, head of Greenpeace's Arctic campaign.

Hanging over the entire operation is the threat that Shell's 10-year exploration licences, which were granted between 2005 and 2008, may expire before Shell can prove there are commercially viable oil discoveries. It has begun talks to try to secure extensions, arguing officials should recognise that their drilling work was delayed in part by factors beyond their control.

But those licences are likely to come under even closer scrutiny after the Kulluk accident. "We will try to put pressure on the US administration to suspend future drilling permits for Shell and the rest of the oil industry," Mr Ayliffe said.

Malcolm Graham-Wood, oil analyst at VSA Capital, said if Shell's plans were delayed "it might cause them to rethink the Arctic in the longer term".

He felt Shell would press ahead for now as "the cost-reward equation is still in their favour". But if the reputational risk of continuing proved worse than that of pulling out, they might reconsider.

"Reputational risk is much more important to people like Shell than $5bn that they can earn in one quarter," he said.

Writing off such a high-profile investment would leave Shell facing awkward questions from investors. One leading shareholder told The Sunday Telegraph he felt the market was "fed up" with Shell generally. He questioned its ability to translate high capital expenditure across its portfolio into increased production, adding: "They are trying to advance too many fronts, not particularly well."

Investors did not oppose Shell exploring the Arctic but were "nervous", he said. "If they spill anything it will be hell to pay."

A HISTORY OF SETBACKS

2007 Shell's plans to drill in the Arctic are halted by legal challenges from campaigners.

2010 Drilling cancelled after a . moratorium is imposed on US offshore drilling in the wake of the BP Gulf of Mexico disaster.

July 2012 Shell says heavier than' expected ice has delayed drilling plans, which are limited to the window in the summer when sea ice melts.

July The Noble Discoverer rig slips its moorings in a storm and drifts towards shore in a bay in the Aleutian area of Alaska.

Summer 2012 Shell is forced to wait to begin work in the Beaufort Sea until local communities have completed their annual whale hunt.

The Arctic Challenger oil spill response barge fails to receive US Coast Guard certification as planned, preventing Shell drilling into oil-bearing zones. Certification is eventually granted in October.

September Shell is forced to stop drilling preparatory top- holes in the Chukchi Sea after one day when a giant floe of sea ice, 12 miles by 30 miles in size, moves toward the site.

A containment dome, used to cap a spill, is damaged in final testing. Official emails say it was "crushed like a beer can" when dropped.

December Reports show that the US Coast Guard has found issues with safety and pollution-prevention equipment on the Noble Discoverer rig after it returns from drilling.

Dec 31 The Kulluk rig runs aground off Alaska after breaking off from tow boats during a storm, while being moved back to Seattle for maintenance.

SOURCE

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Posted in: Alaska, Arctic, Daily Telegraph, Environment, Oil, Oil Spill, Royal Dutch Shell Plc, United States.
Tagged: Alaska · Arctic Ocean · Beaufort Sea · Chukchi Sea · Oil · Royal Dutch Shell Plc

← Vosers Holed Arctic Superbucket

Shell's money play is on the rocks →

Kulluk in an uncontrolled, unplanned, totally screwed-up situation

Jan 5th, 2013

by John Donovan.

It could take until spring for crews to remove a grounded oil-drilling ship from rocks near a remote Alaska island, thanks to the fury of the North Pacific winter, a veteran marine salvager said. "Now it's in an uncontrolled, unplanned, totally screwed-up situation"…

Alaska winter will challenge Shell ship salvage

DAN JOLING | January 5, 2013 03:16 PM EST

ANCHORAGE, Alaska — It could take until spring for crews to remove a grounded oil-drilling ship from rocks near a remote Alaska island, thanks to the fury of the North Pacific winter, a veteran marine salvager said.

The Kulluk, a Royal Dutch Shell PLC barge, ran aground during a fierce year-end storm, and more than 600 people are working on its recovery. But Dan Magone, who has worked on other major groundings in Alaska, said he'd be surprised if they can remove it any time soon.

"I'd really be shocked if this thing is so lightly aground and so lightly damaged that they can just go pull this thing off right away," said Magone, president of Magone Marine, in a telephone interview from his headquarters in Dutch Harbor.

The Kulluk is a circular barge 266 feet in diameter with a funnel-shaped, reinforced steel hull that allows it to operate in ice. One of two Shell ships that drilled last year in the Arctic Ocean, it has a 160-foot derrick rising from its center and no propulsion system of its own.

The vessel was being towed to Seattle last week when a line broke in heavy seas. Re-attached lines broke four more times, and it ran aground New Year's Eve on Sitkalidak Island, less than a mile from Kodiak Island.

Alaska's Department of Environmental Conservation said Saturday that crews had found no sign that the vessel's hull had been breached or that oil had been spilled.

"Now it's in an uncontrolled, unplanned, totally screwed-up situation," Magone said. "Now you're going to go out there and fight the Gulf of Alaska, the Alaskan winter? I don't think so."

Smit Salvage, the Dutch company hired to salvage the Kulluk, referred calls to Shell, which has said it's too early to predict when the barge might be moved.

Magone is not working on the salvage of the Kulluk but has experience with other major groundings, including the Selendang Ayu, a cargo shipwrecked in December 2004 on Unalaska Island.

Magone's company is under contract for two other wrecks –fishing boats from which fuel has been removed – but he's waiting until spring to finish the job.

"The insurance company doesn't want to pay any more money than they have to to get the wrecks out of there, so why risk our equipment and our crew and spend a thousand percent more money playing around in the wintertime when you can just wait until the weather's good and do it then?" Magone said.

"That's pretty normal. Of course with a big fiasco like this, there's all kinds of pressure and everything. But there's a limit to what you can do," he said.

The first salvage crew boarded the vessel Wednesday and assessmentscontinue.

Shell has reported superficial damage above the deck and seawater within that entered through open hatches. Water has knocked out regular and emergency generators, but portable generators were put on board Friday.

The condition of the hull will be key in determining whether the Kulluk can be refloated.

The Coast Guard must review and sign off on a salvage plan. Brian Thomas of the Coast Guard's salvage engineering response team in Washington, D.C., said the team's marine engineers give technical advice and assess risks.

If salvors want to stage equipment on the island, they will need the OK of the landowner, wildlife managers and environmental officials. There are also safety considerations for the crewmembers involved.

Magone expects the Coast Guard to require removal of fuel on board. Salvors already are fighting time and the elements.

"This is the absolute worst time of year to mess with that thing over there," Magone said. "If they can't get it out of there in a few weeks, it's going to be a wreck removal in the springtime."

From damage reports so far, he's guessing the best Shell can hope for is that the Kulluk will not be a total loss and can be rebuilt.

"But it's out of commission," he said. "They've lost the use of it for next year's drilling season, and that's really disheartening for everybody."

SOURCE

Posted in: Alaska, Archive, Associated Press, Oil, United States.
Tagged: Alaska · Arctic Ocean · Beaufort Sea · Chukchi Sea · Oil · Royal Dutch Shell Plc

← Royal Dutch Shell Executive Nebahat Albayrak

US Army joins battle to save stricken Shell rig →

The BP disaster: Who said 'this would be impossible in Shell?'

Jan 4th, 2013

by John Donovan.

COMMENT RECEIVED FROM A SHELL RELATED SOURCE

Amidst all the news on Kulluk, let's not forget about the other one

This is what you get if you use old stuff from the scrap yard…

Remember the hypocritical "blistering attack" by Shell CEO Peter Voser on BP over the devastating Gulf of Mexico oil spill:

Voser promised that Shell would never make the same mistakes as BP.

Since then, blunders and corner-cutting has led to the current debacle.

To me it is all about technical competence.

Many moons ago the Troll project was delivered on time and within budget. This was more innovative and challenging than drilling some wells in Alaska. But then we had the likes of Chapman in charge and not corner-cutting bean-counters like Voser and Henry.

What about the statements of that smug retired HR toad Hofmeister???  He also dumped on BP (and Hayward) whilecampaigning for Shell to be given a green light to drill in the Arctic.Should never listen to fast talking americans.

Posted in: Alaska, Arctic, BP, Environment, GoogleNews, Oil, Peter Voser, Royal Dutch Shell Plc, Simon Henry, United States.
Tagged: Alaska · Arctic Ocean · Beaufort Sea · Chukchi Sea · John Hofmeister · Kulluk· Noble Discoverer · Royal Dutch Shell Plc

← Shell completely incapable of safely drilling in the Arctic

BBC NEWS: Day in pictures: 4 January 2013 →

Seven Benefits of Eating Papaya

Tommy Fassbender, Yahoo! Contributor Network
Apr 21, 2008 "Share your voice on Yahoo! websites. Start Here."

• MORE:
• Papaya

CREDIT:www.free-picture.net

If you are like me you've probably eaten a papaya without giving a second thought to the benefits of the papaya you're eating. You've probably just savored its sweet taste and butter-like consistency and left it at that. Sure, you now that papaya is a fruit; you rightfully assume it's good for you, but know that the benefits of eating papaya go far beyond the generic boost of vitamin C.

Papaya Contains Antioxidants

One of the benefits of eating papaya is that it helps to prevent cancer. Papaya is a rich source of antioxidants that the body needs to fight against cancer-causing cells. Vitamin C, E and beta-carotenes are antioxidants that prevent all kinds of cancers. So adding a daily serving of papaya to your diet may lessen your risk of developing cancer.

Papaya is Used to Treat Digestive Disorders

Papaya is a great source of proteolytic enzymes that are very important in digesting food. The most important of these proteolytic enzymes found in papaya is papain. Papain breaks down proteins in food, allowing for better digestion. Papain is used in prescription of digestive enzymes to treat individuals with cystic fibrosis or pancreatic conditions; producing for them what the body cannot produce naturally. Eating papaya is also a benefit because papain taken orally treats less serious digestion disorders such as bloating and chronic indigestion. In these cases papain is extracted, dried and sold as tablets.

Papaya Boosts Male Virility

Another great benefit of papaya is to boost male virility. Papaya contains an enzyme called arginine which is known in the medically community to boost blood flow around the penis. Arginine boosts nitric acid in the body to relax the muscles surrounding the blood vessels tat supply the penis. These blood vessels then dilate and increase blood flow. A more concentrated form of arginine is used to treat erectile dysfunction.

Papaya Prevents Premature Aging

Many alternative medical practitioners believe that one of the benefits of papaya is to control premature aging. Papaya helps the body to properly digest food and when the body digests all the nutrients it needs, the body will remain vital for a long time.

Papaya is Used as a Cleanser

Taking a quarter pint (150ml) of papaya juice, cucumber juice and green bean juice in alternating hours for 12 hours can be a benefit to your colon. These juices work as potent natural cleansers when combined.

Papaya is also rich in fiber, which travels through the body and binds itself to cancer-causing toxins in the colon. The fiber in papaya flushes out the toxins in the colon and so one of the benefits of papaya is that it helps prevent colon cancer especially, due to its antioxidants and its fiber content.

Papaya Prevents Heart Attacks and Strokes

The antioxidants in papaya prevent cholesterol from oxidizing. When cholesterol becomes oxidized it forms plaque in the blood vessel walls that can eventually build up and cause a heart attack or stroke.

Also, fiber is known to lower cholesterol. The fiber in papaya converts a substance called homocysteine into harmless amino acids that the body can process, but without the breakdown, homocysteine can eventually damage blood vessel walls, causing strokes or heart attacks.

Papaya Treats Inflammation

Papain and chymopapain, protein-digestive enzymes found in papaya lowers inflammation and improve healing from burns. Papain breaks down the inactive proteins in the skin, removing dead tissue from burns. This benefits the body as it helps heal skin injuries, relieves psoriasis, removes warts, treats ringworms and cold sores.

Also vitamins C, E and beta carotenes are good at reducing inflammation and as such these nutrients are used to treat asthma, osteoarthritis and rheumatoid arthritis among many other inflammatory ailments.

Published by Tommy Fassbender

A journalist who enjoys sharing knowledge with the world and hearing what everyone else has to say. I have been writing for years and is happy to finding an outlet like this to express myself.  View profile